90 per person a day The author explains for an economy to grow a country needs

90 per person a day the author explains for an

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population is estimated to living under the international poverty line of $1.90 per person a day.” The author explains for an economy to grow a country needs a growth in factors of production. And how productive those factors are is called total factor productivity. The higher the productivity the higher the output, which will more likely bring more income and higher pay for workers. However, in poor countries high total factor productivity is hard to reach because of limited supplies and educated/ skilled workers. Wolla goes on to explain how a country can escape poverty. The 2 things he states in the article to develop countries are institutions and trade. Wolla says, “ Economists suggest that institutions such as property rights, free/open trade, and the rule of law provide the best incentives and opportunities to produce good and services”. This will give people an incentive to
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produce their goods or services but also continue to improve their method of production. Also, trade is the other factor that can help develop poor countries. The author then states, “ When poorer nations use trade to access capital goods they can increase total function production resulting in a higher rate of economic growth”. Also, trade creates a wider market for a country’s
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  • Fall '08
  • Poverty, gross domestic product, Wolla

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